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1 1 (May 08, 2020)

handle is hein.crs/govdabb0001 and id is 1 raw text is: - cy, ':c ns ....,'c S., 10 gm 0 ILI Updated May 8, 2020 Supplemental Appropriations for Agriculture and Related Agencies Due to COVID-19 In March and April 2020, Congress passed and the President signed four supplemental appropriations acts in response to the COVID-19 pandemic (P.L. 116-123, P.L. 116-127, P.L. 116-136, and P.L. 116-139; Table 1). This In Focus summarizes over $36 billion of appropriations and policy changes in the jurisdiction of the Agriculture appropriations subcommittees. These supplemental appropriations acts are referred to here by order of passage. For comparison, the regular annual Agriculture appropriations are discussed in CRS Report R45974, Agriculture and Related Agencies: FY2020 Appropriations. IF od and D)rug Ad~minrato, FA For FDA to respond to the public health emergency of the COVID-19 pandemic, the first, third, and fourth supplemental appropriations acts provide a total of $163 million. The funds are to develop medical countermeasures and tests (e.g., drugs, vaccines), and monitoring of medical product supply chains. See CRS Report R46285, Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (P.L. 116-123): First Coronavirus Supplemental; and CRS Report R44576, The Food and Drug Administration (FDA) Budget: Fact Sheet. Ntuntt-ri o .,, A s sst a.,, c e Access to food has been a concern, particularly in light of school closures. Rising unemployment may also increase participation in the Supplemental Nutrition Assistance Program (SNAP) and other food assistance programs. The second and third supplemental appropriations acts provide a total of $26 billion for nutrition assistance and give the U.S. Department of Agriculture (USDA) certain flexibilities to increase program access and accommodate social distancing. The Congressional Budget Office (CBO) estimated that SNAP policies in the second law will increase mandatory spending by more than $21 billion over FY2020-FY2021, some of which the third act provides. See CRS Insight IN 11250, USDA Domestic Food Assistance Programs'Response to COVID-19: P.L. 116-127, P.L. 116- 136, and Related Efforts. On April 17, 2020, USDA announced a $19 billion Coronavirus Food Assistance Program (CFAP), composed of $16 billion of direct payments to farmers and $3 billion of commodity purchases. See CRS Report R46347, COVID-19, US. Agriculture, and USDA's Coronavirus Food Assistance Program (CFAP). The CFAP has three funding sources. The $16 billion of direct payments is derived from $9.5 billion in the CARES Act (the third supplemental) and $6.5 billion from the Commodity Credit Corporation (CCC) using the Secretary's general discretion to support agriculture. As of the date of this report, USDA has not announced how it will distribute the direct payments regarding commodities, payment rates, payment limits, and other terms. The $3 billion commodity purchase program uses indefinite authority in the Families First Coronavirus Relief Act (the second supplemental) to make purchases for emergency distribution. On April 21, USDA announced plans to implement a Farmers to Families Food Box Program by purchasing about $100 million per month of fresh produce, $100 million per month of dairy products, and $100 million per month of meat products (chicken and pork). Products purchased from farmers and processors are to be assembled into household-ready boxes for expedited distribution. On May 4, 2020, USDA announced $470 million of additional purchases with Section 32 authority. USDA intends to buy $170 million of produce, $120 million of dairy products, $80 million of poultry, $70 million of fish, and $30 million of pork for distribution through food banks. See CRS Report RL3408 1, Farm and Food Support Under USDA 's Section 32 Program. The third supplemental appropriation also replenishes by July up to $14 billion of funding availability for the CCC, which operates with a $30 billion line of credit with the U.S. Treasury. The $14 billion is not new spending, and will reimburse CCC for past spending. This reimbursement could increase opportunities for USDA to use its executive authority to provide future support. See CRS Insight IN10941, Commodity Credit Corporation: Q&A. C)isastor ,De s i tio, For producers, the majority of USDA's existing disaster response programs cover natural disasters (physical and production). The losses from the pandemic are economic and do not trigger agricultural disaster assistance programs such as emergency loans, despite the President's declaration of a public health emergency under the Stafford Act (CRS Insight IN 11251, The Stafford Act Emergency Declaration for COVID-19). However, USDA has announced some loan flexibilities, including payment deferrals and moratoriums on foreclosures. Rural Devo,opret The third supplemental appropriation provides $146 million for USDA rural development programs, including $100 million for broadband grants, $25 million for rural telemedicine and distance learning, and $20.5 million to support rural business loans. See CRS In Focus IF1 1262, The ReConnect Broadband Pilot Program.

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